Accounts Receivables Services

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Accounts Receivables Services

Managing of Accounts Receivable is an important strategic tool to maximize the return on investment by ensuring that funds blocked in current assets are realised as early as possible. It helps ensuring regular cash inflows to the entity, thereby maintaining the working capital requirements. Efficient handling of accounts receivable ensures efficient cost cutting, increased productivity and growth of business.


Accounts Receivable are assets that would potentially generate cash inflows to the organisation in the near future. They primarily consist of sundry debtors and short-term receivables.

Benefits & Advantages

  • Free up resource and time for the organisation
  • Involves maintaining lesser paper work
  • Efficient handling of working capital
  • Improved chances of collection of dues
  • Smooth cash inflows
  • Improved chances of obtaining funds, blocked in current assets
  • Creation of proper database of sales orders and customer invoices in digital form

Management of Accounts receivable

Accounts receivable needs to be managed effectively to enhance collections from customers thereby maintaining the organisation’s working capital needs. The management of accounts receivable consists of the following: -

  1. Processing of Sales Orders
  2. Timely generation and dispatch of Invoices
  3. Monitoring invoices and payments received
  4. Issuing periodical statements to customers
  5. Coordination with other departments such as Sales, cash
  6. Communication with customers and follow-ups
  7. Ageing of debtors

Accounts Receivable cycle

  1. Obtaining Sales Order
  2. Issuing goods for sale
  3. Generation and dispatch of invoice
  4. Receiving of payments

Outsourcing of Accounts Receivable

Businesses need to primarily focus on their main activity of supplying goods or providing services to survive in this highly competitive world. With increase in the number of customers and allowance of credit periods, it becomes difficult to track the amounts received from each customer. Most businesses prefer outsourcing their accounts receivable activity to an expert agency. Filecrat, as an accounts receivable service provider, would process the sales order and ensure timely collections. We offer these services at reasonable prices to ensure efficient handling of the accounts receivable function which leads to significant cost cutting for your business.

Processes in Accounts Receivable Service

Sales Order Processing: Sales orders are procured from customers. An electronic database of sales orders is created for future reference. Then the sales order is forwarded to the sales department for approval and then to the stores department for release of goods.

Billing and Invoicing: The billing of the goods is done and an invoice is issued to the customer mentioning the details of goods including quantity, rate and total amount, taxes charged, discounts, if any, etc. For efficient control over accounts receivable, billing and release of goods should occur simultaneously.

Statement issue and follow-up: Periodical statements must be issued to the customers showing the amount due from them and the due date of payment of the same. Regular follow-ups with the customer ensure timely collection of receivables.

Debtors Balance Reconciliation: The periodical statements issued to debtors help the company reconcile their books with that of the debtors. This process will detect any error or omission taken place either in the company’s books or in the customer’s books.

Collections from Customers: The debtors ledger is constantly monitored and reconciled with payments received. Ideally the customers should be given reminders as per a payment schedule already shared.

Debtors Ageing Report: The data obtained from customer invoices are segregated based on the number of days within which they fall due.

Customer Helpdesk: An appropriate medium by which the customer can raise any query regarding payments/ invoices is set up. The accounts receivable manager should also be able to communicate directly with the customers when necessary.

Tactics to ensure timely collections

  • Discounts/ Rewards: This includes offering attractive discounts/ cash backs if payment is made early.
  • Interest on late payment: This involves imposing interest on outstanding bills if payment is not received within due date.
  • Regular follow-ups: Regular follow-ups and communication with the customers enhance the chances of timely collection and reduce bad debts.
  • Billing and Supply: This involves ensuring smooth supply of goods, inspecting goods to prevent defective one being sent and preparing invoices with all appropriate information. This reduces the valuable time otherwise lost in returning goods or rectifying invoices.

What’s Included

  • Sales Order processing
  • Invoice generation
  • Updating Records related to accounts receivable
  • Customer follow-up and communication
  • Debtors balance reconciliation
  • Monthly reporting

Documents Required

  • List of customers/ clients
  • Open Sale Orders
  • Invoices issued
  • Inventory List


Should I outsource the accounts receivable function or do it in-house?

Depending on the size of the business, the number of customers and frequency of sales to such customers, the management can decide whether they can easily employ a team in-house for managing the accounts receivable or not. When there are a large number of customers with high frequency of sales and credit period, having the accounts receivable function outsourced can be very effective in cost cutting as well as to ensure smooth collection of dues.

Why is it beneficial to maintain electronic database of customer invoices and sales orders?

The invoices and purchase orders become easily accessible at all times throughout the organisation. This reduces the requirement of paperwork.

How are sales orders processed?

Sales Order Processing starts with obtaining sales order from customers. An electronic database of sales orders is created for future reference. Then the sales order is forwarded to the sales department for approval and then to the stores department for release of goods.

Why is it necessary to reconcile balances of debtors’ ledger with the customer’s books?

It is essential to reconcile the debtors’ ledger maintained by the company with the company ledger maintained in the books of the customer. This should be carried out from time to time to ensure that the books are correct and updated. This will also ensure whether the amount receivable from the customer as per the company books is correct and matches with the amount payable customer’s books.


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